With back-to-school season fast approaching (how is it already the end of Q3?!), we see an influx in requests to withdraw funds from our clients’ Registered Education Savings Plans (RESPs), and the same questions come up a lot: what do I need to do to withdraw from my RESP and what’s the limit I can withdraw?
Ahead of any withdrawals, it’s important to keep in mind that each financial institution might have its own process. However, the only thing you generally need to supply your financial professionals with is a valid document of your child’s enrolment or registration to their post-secondary school. We can handle the rest!
How much can I withdraw?
When it comes to the amount you can withdraw, great news, there is no limit! However, it’s helpful to remember the number of times you’ll need to withdraw over your child’s post-secondary education and what their tuition amounts are, among other things. If you’re unsure of how to plan appropriately, you can always consult your financial professional or bank for assistance. Another helpful tidbit is to make sure that you’re maximizing the grants you’ve received and withdraw from any grants and/or bonds first—this will allow your personally invested funds to continue gaining potential growth.
How often can I withdraw?
A common question we also see from time to time is: can I only withdraw from the RESP once per year, or more? Good news! You can absolutely withdraw from the RESP more than once during the year. As long as your child is enrolled and attending a post-secondary institution, you can request funds from the RESP to cover any of their expenses.
And finally, now that we’re talking about post-secondary expenses, there can be some confusion about what the RESP funds can be used towards. For clarity, you can use the RESP funds for any expenses related to your kids’ education! This includes their enrollment, course registration, course materials, housing, tech expenses and more.
That’s it for today, friends! I hope this helps clear any confusion, and as always, make sure you contact your financial experts to gain answers specific to your circumstances. Have a great back-to-school season!
